University teaching income ‘£6.4 billion less’ than 10 years ago

Universities UK (UUK), a charity that supports 142 higher education institutions, has reported that the teaching income universities receive has dropped by £6.4 billion in the last decade.

In a recent report, the UUK, who works with the University of Warwick, among others, have claimed that funding per student is 64% less in the academic year 2025-2026 in comparison to 2015-2016. This drop can be attributed to the fact that tuition fees and government grants have not risen in line with inflation.

The recent data from the UUK comes after the Office for Students claimed that 45% of universities are facing financial deficit and Bridget Phillipson’s announcement that university tuition fees will go up annually in line with inflation in October.

While these measures may prevent the funding gap from getting larger, there are still an abundance of financial issues impacting the higher education sector.

Of the 60 universities surveyed, 29% had closed courses, 46% had removed module options, and 18% had closed entire departments

The UUK have also reported concerns over the new international student levy, which entails a provider paying an extra £950 per international student per year. It is estimated that the measure could potentially add £780 million to a university’s yearly expenditure, adding further pressure to the sector.

These financial hardships are having significant impacts on the ways in which universities are able to run.

Research from the UUK has shown that of the 60 universities surveyed, 29% had closed courses, 46% had removed module options, and 18% had closed entire departments. Furthermore, almost 80% have considered, or are considering, reductions in theory research investment in the future.

Vivienne Stern, the Chief Executive of the UUK, told Times Higher Education that she was incredibly disappointed by the findings of this report.

While she credited the Secretary of State for Education’s goals for the higher education sector, she emphasised that the UUK’s recent findings “shows just how far off achieving that we are”, as universities are set to be pushed into making cuts over the foreseeable future.